10-9 IAN Farm Values Up
A Northwest Farm Credit Services survey, based on real estate and sales activities that are monitored by Northwest FCS appraisers throughout Idaho, Montana, Oregon and Washington suggests that demand for good quality agricultural land remains strong throughout the Northwest. Values as a whole are stable to increasing. Northwest Farm Credit Services Sr. V.P. of Risk Management Roger Cramer says “Commodity prices are high and interest rates are low which have driven farm expansion and increased rents. Competition has increased in many areas of the Northwest.” Experts believe 2012 will have similar sales transactions as 2010 and 2011. The limited supply of agricultural properties has caused rapid increases in land values and rents in areas of Eastern Washington and Southern and Eastern Idaho. Higher than average farm earnings may make individuals reluctant to sell, creating additional supply constraints within the agricultural market segment. Commodity prices continue to fluctuate, with a favorable outlook for 2012 for most crop and livestock prices. Regional observations shared by appraisers during the first half of 2012 include:
